Is NYSE Trying to Woo Facebook?
FBN’s Charlie Gasparino on the NYSE’s “soft pitch” to Facebook to switch its listing.
- Duration 7:24
- Date May 23, 2012
FBN’s Charlie Gasparino on the NYSE’s “soft pitch” to Facebook to switch its listing.
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This transcript is automatically generated
He -- well to Fox Business senior correspondent Charlie Gasparino on why his sources are telling him.
On the FaceBook fiasco Charlie you're getting.
Some interesting reads from the New York Stock Exchange really gets cut is is a fascinating story because it's it's -- -- -- -- -- stories about the story itself.
Well -- first and exclusively to report first here on Fox Business Network.
Is that the New York Stock Exchange member they competed.
With the NASDAQ for the FaceBook pricing to sell the shares the NASDAQ as you know one it and then lost to buy below in the IPO that incredible debacle occurred.
Last Friday in the wake of that what we understand is that the there's been outreach from the New York Stock Exchange to FaceBook.
What it's been described to us is that a soft pitch.
How are you doing.
Can we help you.
-- was it is being friendly insurance idea for everybody its assault which obviously to bring them over to the New York Stock Exchange at some point we also on the -- That the New York Stock Exchange is made a hard pitch to other tech players okay.
Zynga whatever now the name is that companies and that's right thing guys that are right for report that there -- the first time.
They've made a heart -- and saying.
-- look at the debacle over there do you really want to be listed here.
Come over come over to -- Wall Street works you pray tell somebody steps and it's right here we we should point out that the New York Stock Exchange other reports of a business networks not the Fox Business came out made it sound like was a hard pitch of there right -- going after and yeah they denied that that is not true but the New York Stock Exchange is not denying.
I could I just spoke with -- the PR guy from the New York Stock Exchange what we're reported which essentially is the soft.
Pitch and that's a pretty interest -- story.
It's worth it it's a classy way to go about this it's a classy way to go about it teens think that NASDAQ launches other IPOs.
This -- near term this is this is an interest in -- because I think FaceBook is scheduled to do.
A secondary and I could see why the New York Stock Exchange is plant -- the seeds for the switch I don't think they can do it right now faced -- a lot of stuff going on lawsuits.
But at some point they're going to be out there they're going to be doing.
And I secondary offering off the IPO that's you know that's the talked about a lot about them doing another deal.
Question is -- NASDAQ.
Be willing be be ready to do that deal you know that the New York Stock Exchange will then make -- hard pitch and -- -- agency.
Listen I want to talk about the NASDAQ for a second because I understand the conference call yesterday.
The folks from -- -- said hey we're not bailing people out we don't want to do a dollar for dollar.
Bail out here and we talked to one of the big online brokers.
And got -- state from statement from them I want -- to respond to what they had to say this is Fidelity.
Saying Fidelity senior -- -- management has been working with regulators market makers and NASDAQ to represent.
All of our customers trading issues for May eighteenth and we will continue to do so until we are confident.
Has done everything he can't to mitigate the impact to our customers how do you read that.
-- I can tell you that we were first report on the Fox Business Network Sunday night that.
Investors were saying to people -- an -- caught up in this sort of maelstrom of last Friday with the NASDAQ sort of system broke down.
That they -- losses to lease the investors are hitting NASDAQ -- sales and sort of allegations.
Of losses up to a hundred million dollars and more.
OK that's clear so clearly the investors people to trade to Fidelity believe erode more than what the NASDAQ is -- up.
They're pony up something like thirteen million dollars.
We should point out that there's a cap a liability cap on how much these exchanges.
Can put up the SEC does not want.
Exchanges going out of business because of systems failures so I don't think legally you could force them but here's -- more than the ten to thirteen million.
-- -- -- -- But another question here here's what the -- says and then there's what Smart people didn't make sure they that your exchanges still respected in the community right body I mean that that's the whole thing that NASDAQ is as a huge problem -- -- so -- Clients of brokers these are clients these of these -- brokers -- order flow -- their way.
Right more there's a reason why Bob -- -- the CEO of NASDAQ was as we were first report today.
On the floor of -- of of Morgan Stanley estimate that Morgan Stanley was the lead underwriter.
But guess what Morgan Stanley also has.
Retail people retail investors that buy stock through it and they don't want to lose that order flow.
We know we're just getting -- and is now that.
The same Kelly mentioned Greifeld in my bank all right mr.
right fifteen that -- Patent staff members at house committees today I talk about he's making the rounds obviously yet.
-- Morgan while Morgan Stanley yesterday you know eat meat every he's basically saying.
He's -- to save his job and his what's going on that's that's part of -- -- he's looking to -- the reputation on NASDAQ nasdaq's reputation took a massive hit here remember.
Bob -- filled -- -- CEO.
-- after the new York stock she tried to do its hostile takeover.
Kinda screwed that up when he said he thought he had a wink and a nod from from regulators -- he didn't they can they nixed the deal.
That this thing came and he won the listing for for FaceBook and it was like a huge victory -- there were walking on -- over their -- -- before.
Opening there were popping champagne corks they were doughnuts he sold Bob -- fields like -- weren't assured would Mark Zuckerberg in -- is actually funny scene.
Op Ed then this happened and this just torched their reputation.
You with a real sad part of this this individual investors have been nervous about being in the -- some folks on this how had the opportunity to get back and getting slapped in the face like it is not good for the individual investor and it's a good for the market Jerry.
I've said this from the beginning that we cannot overplayed the story too much this is a story.
That even more than what Jamie Dimon what happened with the London -- a lot -- down at a loss it hurt his speech his shareholders.
They have money they have a lot of capital so was -- was contained to certain degree this is a loss of the market because when you don't believe that a major market exchange.
Can just process your order right.
And by the way well that's fun -- and is it it's not just processing you think you -- at 33 you know whatever 42.
You think you bought it because there's no -- firm could you usually because you your broker said the order went through but we're waiting for the conference.
It was such a chaotic situation.
That I think.
Something's gotta give -- -- NASDAQ I think this -- that.
Obviously what happens what should happen you know who gets in trouble is anybody fired this NASDAQ have to pay -- big find this anybody get in jail.
I don't think anybody's gonna go to jail number one I think there is an outside shot that Bob Greifeld has to step down and at least.
Yes that that he doesn't have the chairmanship he you know -- -- -- try to become chairman of from the NASDAQ is well which would have been a huge to -- right now so I think.
Is an outside shot he might have to step down.
As head of the NASDAQ outside only because of -- normal circumstances yes he would because he had other right issues with the with the New York Stock Exchange hostile take over.
But I think it's outside because he's got a board that's very loyal to him wow arm but will likely make -- mistake like that yeah I chatted up discounted it is pretty it is pretty nasty of the the issue is though.
-- all the people there ago probably the NASDAQ is gonna lose reputation yeah it's probably gonna lose money order flow right arm I can imagine that so much to bring a big IPO to them.
They'd probably now here's the agency take.
FaceBook wants to do -- secondary we talked about it before.
New York stock -- trying to get that secondary may be.
Do you get that did they lose that secondary offer for gonna have to -- there with -- -- -- Charlie Gasparino thank you always a pleasure have a line.